Tax Sale Products Related FAQs

TAX LIEN QUESTIONS

If a tax lien exists for a home that is in foreclosure, is it possible to buy the tax lien?If a home is in foreclosure then more than likely what has happened is no one knows that the taxes are delinquent because of the foreclosure process.  Most of the time the taxes are paid by the mortgage payment or are in escrow with the mortgage and when the owner gets notified so does the mortgage company.  There is a chance to redeem the property and that's usually what happens.  The mortgage company will step up and pay off the taxes so that they don't lose the house. 

A tax lien is first priority when compared to a mortgage and as long as the mortgage company has been notified by public notice that the property is going up for tax sale then that's all that is needed.  If the taxes are not paid by the time of sale then the property will go up for tax sale and it will be too bad for the mortgage company. This doesn't seem fair but is the way that it works!


TAX DEED QUESTIONS

Is the OTC list address the property address or the mailing address of the owner?
There are times when you will get a list that only has the owner's mailing address but as long as you have the parcel number you will be able to find out the address. 

You will pull up the county assessor's website for the county that the listing is from.  Here you will see a property record search where you will plug in the parcel number.  Then submit and you will get the info on the property as well as the property address.  If you do not see an address then you will assume that is is land only.

What is the best way to invest in tax deeds/liens using the 401K fund?  
You will need to convert your 401K into a self directed IRA. This will be done by rolling over your 401K into a self directed IRA.  There are several self directed IRA companies that will be your custodian but not all of them will allow investing in tax liens and tax deeds.  

You will want to set it up as checkbook controlled so you can write your checks for investment at the times it is needed without having to wait on your custodian to cut the check and possibly miss out on the good deals.